The overall rate of growth of China’s real estate market has largely stabilized but the property prices in some of the major cities continue to increase.
The significant increase was noted in December last year. On average, the real estate property on per square meter basis in 100 key Chinese cities has significantly increased by 0.7 percent on month-on-month estimate. It increased to 10,833 yuan or 1,770 US dollars, which is the 19th consecutive increase since June of 2012.
This statistics is based on the published report of the China Index Academy, a real estate research group that is based in Beijing. The research institute has also noted a month-on-month rise of 0.68 percent in November last year. Notable price hikes were posted in 68 key cities. More than 1 percent increase was noted in 19 of those cities. On the other hand, some cities also posted decline in property prices. More than 1 percent decrease were noted in 15 out of 32 cities that experienced price drops last year.
According to Huang Yu, deputy chief of the China Index Academy, the trends in real estate prices indicate a general stabilization. Nonetheless, he also noted that the differences in price growth will significantly diverge depending on the economic and demographic situations of the key cities included in the study. The average property price in the 100 cities being monitored increased by 11.5 percent or equivalent to 7,158 yuan per square meter based on the survey report last month on annualized computation. The top ten cities that experienced the most rapid price hikes included the capital city of Beijing and Shanghai. The year-on-year gains of these cities were averaged to 17.5 percent or equal to 18,994 yuan per square meter.
China Real Estate Information Corp has pointed out that an important factor for the price increase of real properties is the basic law of supply and demand. The supply of prime properties can barely cope up with the demand and level of sales.